"(f) Entericemissions reductions shall be achieved only
through incentive-based mechanisms until the state board, in consultation
with the department, determines that a cost-effective, (considering the
impact on animal productivity), and scientifically proven method of reducing
entericemissions is available and that adoption of the
entericemissions reduction method would not damage
animal health, public health, or consumer acceptance.
Voluntary entericemissions reductions may be used toward
satisfying the goals of this chapter."

An act to
add Sections 39730.5, 39730.6, 39730.7, and 39730.8 to the Health and Safety
Code, and
to add Chapter 13.1 (commencing with Section 42652) to Part 3 of Division 30
of the Public Resources Code, relating to methane emissions.

(1) The California Global Warming Solutions Act of 2006
designates the State Air Resources Board as the state agency charged with
monitoring and regulating sources of
emissions of greenhouse gases. The state board is
required to approve a statewide greenhouse gas
emissions limit equivalent to the statewide
greenhouse gas
emissions level in 1990 to be achieved by 2020. The
state board is also required to complete a comprehensive strategy to reduce
emissions of short-lived climate pollutants, as
defined, in the state. This bill would require the state board, no later than
January 1, 2018, to approve and begin implementing that comprehensive strategy
to reduce
emissions of short-lived climate pollutants to
achieve a reduction in methane by 40%, hydrofluorocarbon gases by 40%, and
anthropogenic black carbon by 50% below 2013 levels by 2030, as specified. The
bill also would establish specified targets for reducing organic waste in
landfills. This bill would require the state board, in consultation with the
Department of Food and Agriculture, to adopt regulations to reduce methane
emissions from
livestock manure management operations and dairy
manure management operations, as specified. The bill would require the state
board to take certain actions prior to adopting those regulations. This bill
would require the regulations to take effect on or after January 1, 2024, if the
state board, in consultation with the department, makes certain determinations.
This bill would require the state board, the Public Utilities Commission, and
the State Energy Resources Conservation and Development Commission to undertake
various actions related to reducing short-lived climate pollutants in the state.
The bill would require state agencies to consider and, as appropriate, adopt
policies and incentives to significantly increase the sustainable production and
use of renewable gas. (2) The California Integrated Waste Management Act of
1989, which is administered by the Department of Resources Recycling and
Recovery, establishes an integrated waste management program that requires each
county and city and county to prepare and submit to the department a countywide
integrated waste management plan.

The bill would require the department, in consultation with the state board,
to adopt regulations that achieve the specified targets for reducing organic
waste in landfills. The bill would authorize local jurisdictions to charge and
collect fees to recover the local jurisdiction’s costs incurred in complying
with the regulations. The bill would require, no later than July 1, 2020, the
department, in consultation with the state board, to analyze the progress that
the waste sector, state government, and local governments have made in
achieving the specified targets for reducing organic waste in landfills. The
bill would authorize the department, depending on the outcome of that
analysis, to amend the regulations to include incentives or additional
requirements, as specified. By adding to the duties of local governments
related to organic waste in landfills, this bill would impose a state-mandated
local program.

(3) The California Constitution requires the state to reimburse local agencies
and school districts for certain costs mandated by the state. Statutory
provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a
specified reason.

Digest Key

Bill Text

The people of the State of California do enact
as follows:

SECTION 1.

(a) The Legislature finds and declares all of the following:

(1) Short-lived climate pollutants, such as black carbon, fluorinated
gases, and methane, are powerful climate forcers that have a dramatic
and detrimental effect on air quality, public health, and climate
change.

(2) These pollutants create a warming influence on the climate that is
many times more potent than that of carbon dioxide.

(3) Short-lived climate pollutants that are toxic air contaminants also
are a significant environmental risk factor for premature death.

(4) Reducing
emissions of these pollutants can have an
immediate beneficial impact on climate change and on public health.

(5) To the extent possible, efforts to reduce
emissions of short-lived climate pollutants
should focus on areas of the state that are disproportionately affected
by poor air quality.

(b) It is the intent of the Legislature to support the adoption of
policies that improve organics recycling and innovative, cost effective,
and environmentally beneficial uses of biomethane derived from solid
waste facilities.

(c) It is intent of the Legislature that the disposal reduction targets
established pursuant to Section 39730.6 of the Health and Safety Code
shall serve as a statewide average target and not as a minimum
requirement for each jurisdiction.

SEC. 2.

Section 39730.5 is added to the Health and Safety Code, to read:

39730.5.

(a) No later than January 1, 2018, the state board shall approve
and begin implementing the comprehensive short-lived climate
pollutant strategy developed pursuant to Section 39730 to achieve a
reduction in the statewide
emissions of methane by 40 percent,
hydrofluorocarbon gases by 40 percent, and anthropogenic black
carbon by 50 percent below 2013 levels by 2030.

(b) Prior to approving the short-lived climate pollutant strategy
pursuant to subdivision (a), the state board shall do all of the
following:

(1) Coordinate with other state and local agencies and districts to
develop measures identified as part of the strategy.

(2) Provide a forum for public engagement by holding at least three
public hearings in geographically diverse locations throughout the
state.

(3) Evaluate the best-available scientific, technological, and
economic information to ensure that the strategy is cost effective
and technologically feasible.

(4) Incorporate and prioritize, as appropriate, measures and actions
that provide the following cobenefits:

(A) Job growth and local economic benefits in the state.

(B) Public health benefits.

(C) Potential for new innovation in technology, energy, and resource
management practices.

(c) The state board shall publicly notice the strategy described in
subdivision (a) and post a copy of that strategy on the state
board’s Internet Web site at least one month prior to the state
board approving the strategy pursuant to subdivision (a).

SEC. 3.

Section 39730.6 is added to the Health and Safety Code, to read:

39730.6.

(a) Consistent with Section 39730.5, methane
emissions reduction goals shall include
the following targets to reduce the landfill disposal of organics:

(1) A 50-percent reduction in the level of the statewide disposal of
organic waste from the 2014 level by 2020.

(2) A 75-percent reduction in the level of the statewide disposal of
organic waste from the 2014 level by 2025.

(b) Except as provided in this section and Section 42652.5 of the
Public Resources Code, the state board shall not adopt, prior to
January 1, 2025, requirements to control methane
emissions associated with the disposal
of organic waste in landfills other than through landfill methane
emissions control regulations.

SEC. 4.

Section 39730.7 is added to the Health and Safety Code, to read:

39730.7.

(a) For purposes of this section, the following terms have the
following meanings:

(1) “Department” means the Department of Food and Agriculture.

(2) “Commission” means the Public Utilities Commission.

(3) “Energy commission” means the State Energy Resources
Conservation and Development Commission.

(b) (1) The state board, in consultation with the department, shall
adopt regulations to reduce methane
emissions from
livestock manure management operations
and dairy manure management operations, consistent with this section
and the strategy, by up to 40 percent below the dairy sector’s and
livestock sector’s 2013 levels by 2030.

(2) Prior to adopting regulations pursuant to paragraph (1), the
state board shall do all of the following:

(A) Work with stakeholders to identify and address technical,
market, regulatory, and other challenges and barriers to the
development of dairy methane
emissions reduction projects. The group
of stakeholders shall include a broad range of stakeholders involved
in the development of dairy methane reduction projects, including,
but not limited to, project developers, dairy and
livestock industry representatives,
state and local permitting agencies, energy agency representatives,
compost producers with experience composting dairy manure,
environmental and conservation stakeholders, public health experts,
and others with demonstrated expertise relevant to the success of
dairy methane
emissions reduction efforts.

(B) Provide a forum for public engagement by holding at least three
public meetings in geographically diverse locations throughout the
state where dairy operations and
livestock operations are present.

(3) The state board shall make available to the public by posting on
its Internet Web site a report on the progress made in implementing
paragraph (2). Pursuant to Section 9795 of the Government Code, the
state board shall notify the Legislature of the report.

(4) Notwithstanding the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2
of the Government Code), the regulations adopted pursuant to
paragraph (1) shall be implemented on or after January 1, 2024, if
the state board, in consultation with the department, determines all
of the following:

(A) The regulations are technologically feasible.

(B) The regulations are economically feasible considering milk and
live cattle prices and the commitment of state, federal, and private
funding, among other things, and that markets exist for the products
generated by dairy manure management and
livestock manure management methane
emissions reduction projects, including
composting, biomethane, and other products. The analysis shall
include consideration of both of the following:

(ii) Access to common carrier pipelines available for the injection
of digester biomethane.

(C) The regulations are cost effective.

(D) The regulations include provisions to minimize and mitigate
potential leakage to other states or countries, as appropriate.

(E) The regulations include an evaluation of the achievements made
by incentive-based programs.

(c) No later than July 1, 2020, the state board, in consultation
with the department, shall analyze the progress the dairy and
livestock sector has made in achieving
the goals identified in the strategy and specified in paragraph (1)
of subdivision (b). The analysis shall determine if sufficient
progress has been made to overcome technical and market barriers, as
identified in the strategy. If the analysis determines that progress
has not been made in meeting the targets due to insufficient funding
or technical or market barriers, the state board, in consultation
with the department and upon consultation with stakeholders, may
reduce the goal in the strategy for the dairy and
livestock sectors, as identified
pursuant to paragraph (1).

(d) (1) (A) No later than January 1, 2018, the state board, in
consultation with the commission and the energy commission, shall
establish energy infrastructure development and procurement policies
needed to encourage dairy biomethane projects to meet the goal
identified pursuant to paragraph (1) of subdivision (b).

(B) The state board shall develop a pilot financial mechanism to
reduce the economic uncertainty associated with the value of
environmental credits, including credits pursuant to the Low-Carbon
Fuel Standard regulations (Subarticle 7 (commencing with Section
95480) of Title 17 of the California Code of Regulations) from
dairy-related projects producing low-carbon transportation fuels.
The state board shall make recommendations to the Legislature for
expanding this mechanism to other sources of biogas.

(2) No later than January 1, 2018, the commission, in consultation
with the state board and the department, shall direct gas
corporations to implement not less than five dairy biomethane pilot
projects to demonstrate interconnection to the common carrier
pipeline system. For the purposes of these pilot projects, gas
corporations may recover in rates the reasonable cost of pipeline
infrastructure developed pursuant to the pilot projects.

(e) No later than January 1, 2018, the state board shall provide
guidance on credits generated pursuant to the Low-Carbon Fuel
Standard regulations (Subarticle 7 (commencing with Section 95480)
of Title 17 of the California Code of Regulations) and the
market-based compliance mechanism developed pursuant to Part 5
(commencing with Section 38570) of Division 25.5 from the methane
reduction protocols described in the strategy and shall ensure that
projects developed before the implementation of regulations adopted
pursuant to subdivision (b) receive credit for at least 10 years.
Projects shall be eligible for an extension of credits after the
first 10 years to the extent allowed by regulations adopted pursuant
to the California Global Warming Solutions Act of 2006 (Division
25.5 (commencing with Section 38500)).

(f) Entericemissions reductions shall be achieved
only through incentive-based mechanisms until the state board, in
consultation with the department, determines that a cost-effective,
considering the impact on animal productivity, and scientifically
proven method of reducing entericemissions is available and that adoption
of the entericemissions reduction method would not
damage animal health, public health, or consumer acceptance.
Voluntary entericemissions reductions may be used toward
satisfying the goals of this chapter.

(g) Except as provided in this section, the state board shall not
adopt methane
emissions reduction regulations
controlling the
emissions of methane from dairy
operations or
livestock operations to achieve the 2020
and 2030 greenhouse gas
emissions reduction goals established
pursuant to the California Global Warming Solutions Act of 2006
(Division 25.5 (commencing with Section 38500)).

(h) Nothing in this section shall limit the authority of the state
board to acquire planning and baseline information, including
requiring the monitoring and reporting of
emissions.

(i) This section does not in any way affect the state board’s or
districts’ authority to regulate
emissions of criteria pollutants, toxic
air contaminants, or other pollutants pursuant to other provisions
of this division.

SEC. 5.

Section 39730.8 is added to the Health and Safety Code, to read:

39730.8.

(a) For purposes of this section, the following terms have the
following meanings:

(1) “Commission” means the Public Utilities Commission.

(2) “Energy commission” means the State Energy Resources
Conservation and Development Commission.

(b) The energy commission, in consultation with the state board and
the commission, shall develop recommendations for the development
and use of renewable gas, including biomethane and biogas, as a part
of its 2017 Integrated Energy Policy Report prepared pursuant to
Section 25302 of the Public Resources Code. In developing the
recommendations, the energy commission shall identify cost-effective
strategies that are consistent with existing state policies and
climate change goals by considering priority end uses of renewable
gas, including biomethane and biogas, and their interactions with
state policies, including biomethane and all of the following:

(1) The Renewables Portfolio Standard program (Article 16
(commencing with Section 399.11) of Chapter 2.3 of Part 1 of
Division 1 of the Public Utilities Code).

(2) The Low-Carbon Fuel Standard regulations (Subarticle 7
(commencing with Section 95480) of Title 17 of the California Code
of Regulations).

(3) Waste diversion goals established pursuant to Division 30
(commencing with Section 40000) of the Public Resources Code.

(4) The market-based compliance mechanism developed pursuant to Part
5 (commencing with Section 38570) of Division 25.5.

(5) The strategy.

(c) Based on the recommendations developed pursuant to subdivision
(b), and to meet the state’s climate change, renewable energy,
low-carbon fuel, and short-lived climate pollutants goals, including
black carbon, landfill diversion, and dairy methane targets
identified in the strategy, state agencies shall consider and, as
appropriate, adopt policies and incentives to significantly increase
the sustainable production and use of renewable gas, including
biomethane and biogas.

(d) Based on the recommendations developed pursuant to subdivision
(b), the commission, in consultation with the energy commission and
the state board, shall consider additional policies to support the
development and use in the state of renewable gas, including
biomethane and biogas, that reduce short-lived climate pollutants in
the state.

(e) In implementing this section, priority shall be given to fuels
with the greatest greenhouse gas
emissions benefits, including the
consideration of carbon intensity and reduction in short-lived
climate pollutants, as appropriate.

SEC. 6.

Chapter 13.1 (commencing with Section 42652) is added to Part 3 of
Division 30 of the Public Resources Code, to read:

(c) More robust state and local funding mechanisms are needed to
support the expansion of organics recycling capacity.

42652.5.

(a) The department, in consultation with the State Air Resources
Board, shall adopt regulations to achieve the organic waste
reduction goals for 2020 and 2025 established in Section 39730.6 of
the Health and Safety Code. The regulations shall comply with all of
the following:

(1) May require local jurisdictions to impose requirements on
generators or other relevant entities within their jurisdiction and
may authorize local jurisdictions to impose penalties on generators
for noncompliance.

(2) Shall include requirements intended to meet the goal that not
less than 20 percent of edible food that is currently disposed of is
recovered for human consumption by 2025.

(4) May include different levels of requirements for local
jurisdictions and phased timelines based upon their progress in
meeting the organic waste reduction goals for 2020 and 2025
established in Section 39730.6 of the Health and Safety Code. The
department shall base its determination of progress on relevant
factors, including, but not limited to, reviews conducted pursuant
to Section 41825, the amount of organic waste disposed compared to
the 2014 level, per capita disposal rates, the review required by
Section 42653, and other relevant information provided by a
jurisdiction.

(5) May include penalties to be imposed by the department for
noncompliance. If penalties are included, they shall not exceed the
amount authorized pursuant to Section 41850.

(6) Shall take effect on or after January 1, 2022, except the
imposition of penalties pursuant to paragraph (1) shall not take
effect until two years after the effective date of the regulations.

(b) A local jurisdiction may charge and collect fees to recover the
local jurisdiction’s costs incurred in complying with the
regulations adopted pursuant to this section.

42653.

(a) No later than July 1, 2020, the department, in consultation
with the State Air Resources Board, shall analyze the progress that
the waste sector, state government, and local governments have made
in achieving the organic waste reduction goals for 2020 and 2025
established in Section 39730.6 of the Health and Safety Code. The
analysis shall include all of the following:

(1) The status of new organics recycling infrastructure development,
including the commitment of state funding and appropriate rate
increases for solid waste and recycling services to support
infrastructure expansion.

(2) The progress in reducing regulatory barriers to the siting of
organics recycling facilities and the timing and effectiveness of
policies that will facilitate the permitting of organics recycling
infrastructure.

(3) The status of markets for the products generated by organics
recycling facilities, including cost-effective electrical
interconnection and common carrier pipeline injection of digester
biomethane and the status of markets for compost, biomethane, and
other products from the recycling of organic waste.

(b) If the department determines that significant progress has not
been made on the items analyzed pursuant to subdivision (a), the
department may include incentives or additional requirements in the
regulations described in Section 42652 to facilitate progress
towards achieving the organic waste reduction goals for 2020 and
2025 established in Section 39730.6 of the Health and Safety Code.
The department may, upon consultation with stakeholders, recommend
to the Legislature revisions to those organic waste reduction goals.

42654.

This chapter shall not limit the authority of a local
jurisdiction to adopt, implement, or enforce requirements in
addition to those set forth in the regulations adopted pursuant to
this chapter.

SEC. 7.

No reimbursement is required by this act pursuant to Section 6 of
Article XIII B of the California Constitution because a local agency or
school district has the authority to levy service charges, fees, or
assessments sufficient to pay for the program or level of service
mandated by this act, within the meaning of Section 17556 of the
Government Code.